A short sale involves the sale of the subject
property securing a loan or line of credit
whereby the proceeds of the sale are
insufficient to pay the balance in full.
A short sale is an option to customers who can
no longer afford their property or are unable to
continue to maintain the home and desire to
sell. If the expected proceeds from the sale are
insufficient to pay the loan(s) in full, a short
sale may be possible.
Your mortgage servicer Loss Mitigation
specialist will work with you and your real
estate agent during the process to ensure all
approval requirements are met and a timely
decision is made.
Frequently Asked Questions
My property is not
listed. How do I start the Short Sale
process?
If you want to
sell your property because you can no
longer afford the payments, contact your
local licensed real estate agent about
listing your property for sale on the
local Multiple Listing Service (MLS). If
you want to keep your property but are
unaware of the current options or
whether you may qualify for a loan
modification,
start here
to learn more about home retention
options.
My property has been listed for months
but it is not selling.
Discuss
the pricing with your real estate agent
to ensure the property is listed at a
competitive price within the fair market
value range for the area. You and/or
your real estate agent may contact a
your mortgage servicer Loss Mitigation
specialist to review options if your
property is not selling.
My property is
listed but I want to keep it. How do I
know if I qualify for a Modification?
If you want to
keep your property and have not applied
for a Modification,
start here
to learn more about home retention
options.
I have an offer on my property. What
should I do?
If you
have received an offer on your property
you will need to complete the
information in the Short Sale
Information Packet and fax all required
documentation listed.
What documentation will I need to submit
with my Short Sale request?
You will
need to complete a request for Short
Sale using the Short Sale Information
Packet. This contains the information
your mortgage servicer need describing
your situation as well as contains a
checklist of the supporting
documentation you'll need to provide. If
you have already submitted your
financial information and hardship
affidavit as part of a loan modification
request, you can use the Short Sale
Supplemental Packet which outlines the
required information regarding the sale
of the property.
How do I submit the required
documentation?
You will
have the option to fax the documentation
or mail.
How long does the process take?
Once all
required documentation is submitted a
decision is typically completed within
30 days. Common reasons decisions may be
delayed include low offers for your
property which are under fair market
value and junior liens held by other
banks or individuals that also need to
agree to a short sale. Depending on the
type of loan, an investor and/or insurer
may also need to approve the sale.
Will I have any tax liabilities?
Consult
your tax advisor to see if you will
incur any tax liabilities as a result of
the short sale.
How will a Short Sale affect my credit?
The
completion of a Short Sale may affect
your credit rating. The final
disposition of a completed Short Sale
may be reported as "Account paid in full
for less than the full balance" on your
credit report.
Does mortgage servicer charge a fee for
the completion of a Short Sale?
No,
mortgage servicer does not charge a fee
for processing or completing a Short
Sale.
I signed up with a Short Sale
negotiation service. Will mortgage
servicer pay their fee?
No,
mortgage servicer will not pay any 3rd
party Short Sale negotiation or
processing fee nor allow this type of
fee to be deducted from the proceeds of
the sale of the property.
Will I be required to pay back the
amount of the shortage or the deficiency
balance?
The
approval letter will specify the terms
of the Short Sale approval. Your Loss
Mitigation specialist will be able to
explain whether the deficiency balance
will still be owed.
My loan is in Foreclosure. Can I still
be considered for a Short Sale?
Yes,
however the Foreclosure may continue
during the process. Please contact your
Loss Mitigation specialist for more
information.
My loan is current. Can I still be
considered for a Short Sale?
Yes,
however the required financial
documentation must be submitted along
with a detailed Hardship letter
explaining the inability to continue to
maintain your loan payments.
I have two loans. Can I still be
considered for a Short Sale?
Yes,
however if the 2nd loan is with another
bank they will need to approve the Short
Sale separately.
My property is a rental. Can I still be
considered for a Short Sale?
Yes,
however you must include rental income
documentation, which will include bank
statements, rental agreements or an
explanation letter if rents are not
being generated.
Do property taxes need to be paid during
the Short Sale process?
Yes, if
your property taxes are not escrowed as
part of your loan payment and they
become due they should be paid.
I filed Bankruptcy. Can I still be
considered for a Short Sale?
Yes,
however consult your Bankruptcy attorney
regarding the process of selling your
property during a Bankruptcy.
I want to deed my property to my
mortgage servicer. I have heard this is
possible through a Deed in Lieu of
Foreclosure. Is this an option?
This may
be an option however it is recommended
the Short Sale option is reviewed first.
Please contact your mortgage servicer
Loss Mitigation specialist for more
information.
